Gems and Jewelery-Overview

Size
y y y y y y y y
Large market for Gems & Jewelery with domestic sales of over $10 billion. 4% of the global Gems and Jewelery market . Exports of over $15.5 billion; over 18% of Indias exports. India is the largest consumer of gold jewelery in the world. Accounts for about 20% of world consumption. India is the largest diamond cutting and polishing centerer in the world. 60% value share, 85% volume share and 92% share of the world market by number of pieces. Third largest consumer of polished diamonds after USA and Japan.

Structure
The Indian Gems & Jewelery industry is highly fragmented with a large number of domestic private sector companies.

y y y

A large portion of the market is in the unorganized sector . India is gaining prominence as an international sourcing destination for high quality designer jewelery . Walmart, JC Penney etc. procure jewelery from India .

Policy
y y
100% FD is permitted in the Gems & Jewelery sector through the automatic route. SEZs and Gems and Jewelery Parks have been set up to promote investments in the sector.

Opportunity
India is one of the largest exporters of gems and jewelery India is the diamond polishing capital of the world.

Outlook
India is the fastest-growing jewelery market in the world.

y y y

Branded jewelery likely to be the fastest-growing segment in domestic sales. Expected to grow at 40% p.a. to $2.2 billion by 2010. Exports expected to grow from $15.5 billion in 2005 to over $25 billion by 2010.

Potential
India has several well recognized strengths which have made it a significant force in the global Gems and Jewelery business.

y y

Highly skilled, yet low-cost labor. Established manufacturing excellence in jewelery and diamond polishing.

y y y

India is the most technologically advanced diamond cutting center in the world. Opportunity to address one of the worlds largest and fastest-growing Gems and Jewelery markets. Opportunity to leverage Indias strengths to address the global market .

Government Initiatives
In the New Annual Supplement to Foreign Trade Policy (2004-2009) announced on April 19, 2007, the Government has extended the following facilities to this sector:

y y y

Service Tax on services (related to exports), which are rendered abroad have been exempted. Re-import of Diamonds & Jewelery (either in complete or partial lot) exported on consignment basis have been allowed. In the light of increase in global prices of precious metal, duty free entitlement for consumables for export of rhodium plated silver jewelery has been increased to 3 per cent. To reduce the transaction cost for the diamond sector, testing facility at International Diamond Laboratory (IDL), Dubai, has been incorporated in the list of laboratory/certifying agencies. Duty free import entitlement of tools, machinery & equipment has been allowed. For metals other than gold, platinum, it will be 2 per cent and for gold and platinum, it will be 1 per cent of FOB value of exports during the previous financial year. Categorization of exporters as One to Five Star Export Houses has been changed to Export Houses and Trading Houses with rationalization and change in export performance parameters.

In addition, the Government has decided to make gold hallmarking mandatory from January 1, 2008. It has also made the import of polished diamonds completely duty free. This will facilitate the sector towards evolving from being just a manufacturing centerer to becoming a global trading hub for diamonds, gems and jewelery. The committee appointed to study India's National Design Policy is likely to recommend the setting up of four additional National Institutes of Design (NIDs), along the lines of the existing Ahmadabad-based NID, whose curriculum includes, among other disciplines, jewelery design.

Gemstones
Probably the first stone used for ornamental purposes was a smooth colored river rock. Or maybe a pretty river stone was spotted before a hunter successfully got his dinner. The hunter

then carried that pretty river stone with him as his lucky hunting stone. Stones of all kinds have played a very important part of the history of humans. From little river stones to huge stones, such as at Stonehenge, stones of all sizes and types have been called "the bones of Mother Earth". Gemstone is any of various minerals highly prized for beauty, durability, and rarity. Of the more than 2,000 identified natural minerals, fewer than 100 are used as gemstones and only 16 have achieved importance. These are beryl, chrysoberyl, corundum, diamond, feldspar, garnet, jade , lazurite, olivine, opal, quartz , spinel , topaz, tourmaline, turquoise, and zircon. Some of these minerals provide more than one type of gem. Beryl, for example, provides emerald and <aquamarine, while corundum provides rubies and sapphires. In virtually all cases, the minerals have to be cut and polished for use in jewelry. Gemstones have attracted humankind since ancient times, and have long been used for jewelry. The prime requisite for a gem is that it must be beautiful. The beauty may lie in color or lack of color, in the latter case, extreme limpidity and "fire" may provide the attraction. A gem must also be durable to withstand the wear and tear of constant handling. In some cases, the color of gemstones is also artificially enhanced (treated gem) to increase the value of the stone. Staining, heat treatment, and irradiation are used among the treatments.

Optical Properties
The beauty of gems depends to a large extent on their optical properties. The most important optical properties are the degree of refraction and color. Other properties include fire, the display of prismatic colors; dichroism, the ability of some gemstones to present two different colors when viewed in different directions; and transparency. Diamond is highly prized because of its fire and brilliancy, ruby and emerald because of the intensity and beauty of their colors, and star sapphire and star ruby because of the star effect, known as asterism, as well as for their color. In certain gemstones, notably opals, brilliant areas of color can be seen within the stone; these areas change in hue and size as the stone is moved. This phenomenon, known as play of color, differs from fire and is caused by interference and reflection of the light by tiny irregularities and cracks inside the stone. Opals also exhibit milky or smoky reflections from within the gem. Gems that are fibrous in structure show irregular interior reflections similar to those seen on watered or moire silk. This optical property, which is called chatoyancy, is exhibited by several gems, notably the tiger eye and cats-eye. The appearance of a gem as seen by reflected light is another optical property of gemstones and is called luster. The luster of gems is characterized by the terms metallic, adamantine (like the luster of the diamond), vitreous (like the luster of glass), resinous, greasy, silky, pearly, or dull. Luster is particularly important in the identification of gemstones in their uncut state.

Identification of Gems
A gem cannot always be identified by sight alone. It is therefore necessary to rely on measurement of the optical properties that can be determined without harming the stone in any way. The gemologist uses an instrument called a refractometer to measure the characteristic property of the stone, known as refractive index, which is its relative ability to refract light. In addition, an instrument called the polariscope is employed to determine whether a gem is doubly or singly refracting. Emeralds, rubies, sapphires, amethysts, and synthetic rubies and sapphires are all doubly refracting, whereas diamonds, spinels, synthetic spinels, garnets, and glass are singly refracting. A special dark-field illuminator with a binocular microscope is employed for examining

the interior of a gemstone to determine whether it is of natural or artificial origin, and to search for inclusions characteristic of a given gemstone. These tests usually are sufficient to identify the rather limited number of materials used as gemstones; occasionally, however, other instruments are required, including a dichroscope, which measures the property called dichroism, or a spectroscope to determine the characteristic absorption spectra . Hardness, the test ordinarily associated with gem testing, is never used on cut stones by the gemologist. Another physical test that can be given to an unknown stone is the determination of its specific gravity . For exact determinations various weighing devices are used, but rough approximations of the specific gravity of lighter stones can be made by means of a series of liquids of known specific gravity. If the stone will float in a liquid having a specific gravity of 4 and sink in a liquid with a specific gravity of 3, the specific gravity of the stone must lie between these limits and be approximately 3.5.

Artificial Gems
The term artificial gem is used to describe either an imitation of a natural gemstone or a synthetic gem that is chemically identical to naturally occurring gems.

Imitation Gem
Such a gem may be made of flint glass, often silvered on the back to increase the brilliance. Since World War II, colored plastics have replaced glass, especially in costume jewelry. Plastics are cheaper, more easily molded, and lighter in weight. During the 19th century, artificial pearls were made by blowing hollow beads of glass and pouring into them a mixture of liquid ammonia and the white matter from the scales of fish such as the bleak, roach, or dace. A much better type of artificial pearl, the indestructible bead, was introduced shortly after 1900. The bead is made of solid glass with only a narrow hole for the thread. Pearl essence, consisting of the crushed scales of certain herring, is applied to the outside of the glass and covered with a transparent, colorless lacquer. The most successful imitation of a diamond is strontium titanate, made by a flame-fusion technique. Its index of refraction is almost identical to that of a diamond, and it has a higher dispersion. Thus, it has the brilliance and greater fire than the diamond. It scratches easily, however. A harder material simulating the diamond is rutile, or titanium oxide.

Synthetic Gems
The term is limited by the U.S. Federal Trade Commission to manufactured materials that duplicate a natural gemstone chemically, physically, and optically. Synthetic gems can be distinguished under a microscope because they are more perfect than natural gemstones and contain no irregularities. Synthetic diamonds were first made by the General Electric Company in the U.S. in 1955. In their process, carbonaceous compounds are subjected to pressures of 56 metric tons per sq cm (360 metric tons per sq in) at temperatures of 2760 C (5000 F). The diamonds thus produced are suitable only for industrial use. In the late 1960s a method was developed for "growing" diamonds by heating a diamond particle to a high temperature and subjecting it to methane gas. The gas decomposes into carbon atoms, which adhere to the diamond crystal. The crystal structure of the enlarged diamond is identical

to that of a natural diamond. Diamonds of about 1 carat (200 mg or 0.007 oz) have been produced by this method, but their cost is still considerably higher than that of naturally occurring diamonds. Sapphires are made in an apparatus resembling an oxyhydrogen torch. The flame is directed into a fire clay support inside an insulated chamber. The oxygen gas carries finely powdered pure aluminum oxide into the flame, and the powder fuses into droplets, forming a cylindrical boule, or matrix, on the support. The size of the resulting sapphire is controlled by varying the gas flow, temperature, and amount of powder. Boules weighing up to 200 carats (40 g or 1.41 oz) can be produced by this technique. Perfect rubies and sapphires up to 50 carats (10 g or 0.353 oz) have been cut from such a boule. Rubies are made by the same process by adding 5 to 6 percent chromium oxide to the aluminum oxide. Colors other than red are produced by adding different metallic oxides. Stars can be added to synthetic rubies or sapphires by adding an excess of titanium oxide to the aluminum oxide powder and heating to temperatures greater than 1000 C (greater than 1832 F). In gems made with this technique, synthetic stars appear sharper than naturally occurring stars. Emeralds, some of which are of gem quality, are synthesized by still-secret methods. They can be distinguished from natural emeralds by their red glow under ultraviolet light.

Gem Cutting
The shaping and polishing of gem materials to enhance their beauty and, in some cases, to remove imperfections is performed by expert workers known as lapidaries. Their trade, although highly skilled, is not as exacting as that of the diamond cutter.

Materials and Equipment

Gems are shaped entirely by being ground on abrasive wheels or revolving abrasive disks. For minerals that are no harder than quartz, natural sandstone wheels are sometimes used, but for the harder stones, such as rubies and sapphires, synthetic grinding wheels of cemented Carborundum (silicon carbide) must be employed. The first step in the cutting of a gem is to saw it roughly to shape. Thin abrasive disks or metal disks charged with powdered diamond or other abrasives are employed in this process. Wheels (called laps) made of Carborundum or of abrasive-charged cast iron are used to shape the stone. The stone to be shaped is cemented to the end of a wooden stick called a dop and is held against the revolving wheel or lap with the aid of a supporting block placed adjacent to the wheel. This supporting block contains a number of holes in which the end of the dop can be rested. By changing the dop from one hole to another the lapidary is able to control the angle of the facet, or face, being ground. When the stone has been ground to the required shape, it is brought to a high polish on wooden or cloth wheels charged with a fine abrasive such as rouge or tripoli powder.

Gem Cuts
The oldest and simplest of the many standardized shapes or cuts given to gemstones is the cabochon cut, in which the stone is smoothly rounded. The cabochon cut is essential if a star or cats-eye is to be visible, and is the most satisfactory cut for opal, moonstone, and colorful opaque gems. Cabochon-cut stones usually are rounded on the back; this is sometimes advantageous in improving appearance, but often is done in order to give the stone extra weight. Various forms of faceted cuts, in which the gem is given a number of symmetrical plane

surfaces, or facets, are universally employed in the cutting of diamonds and are used extensively for other stones as well. The most common cut is the brilliant. In this cut the top of the stone is ground to a flat so-called table from which the sides of the stone slope outward to the broadest portion of the stone, which is known as the girdle. Below the girdle, the sides slope inward at a slightly broader angle to a tiny flat surface, the culet, parallel to the table at the bottom of the stone. The ordinary brilliant-cut stone has 32 facets besides the table in the top portion of the stone (called the crown or bezel) above the girdle, and 24 facets besides the culet on the bottom portion of the stone (called the pavilion or base) below the girdle. In rare cases the number of facets is increased by some multiple of 8. Scientific studies have worked out proportions of the size and inclination of the facets that give the maximum brilliance to a given gem. In addition to the round brilliant, stones are cut in a variety of square, triangular, diamondshaped, and trapezoidal faceted cuts. The use of such cuts is largely determined by the original shape of the stone. Large rubies, sapphires, and emeralds are often cut square or rectangular with a large table facet surrounded by a relatively small number of supplementary facets. The emerald cut, which is frequently also used for diamonds, resembles the brilliant, but has a large square or rectangular facet at the top and a total of 58 facets in all, although more or less facets may be used, again added or subtracted in multiples of 8.

Gem Engraving
Designs are cut in precious or semiprecious stones either as cameos, in which the design is raised in relief above the surface, or as intaglios, in which the design is incised into the surface (see Cameo). Intaglios were formerly often used as seals for making impressions on wax or damp clay. The technique of gem engraving requires, on all hard stones, the use of a rotating metal tool. The stone is fastened to a wooden handle and moved against the tool, which does not itself perform the cutting of the design but merely rubs abrasive powder on the stone. The ancients probably used emery powder for this purpose, but since Roman times the abrasive has been a mixture of diamond dust with oil.

Ancient Engraving
Intaglio cutting probably started during the 4th millennium BC, in Mesopotamia, during the Elamite and Sumerian civilizations (see Mesopotamian Art and Architecture). The first seals, made of stone, were usually cylindrical and were suspended on a cord. The art reached its peak about 2800 BC, in elaborate cuttings on cylindrical rock crystal; these commonly dealt with the adventures of the mythical king Gilgamesh. By the 1st millennium BC the art had spread throughout Asia Minor and Egypt. Although the cylindrical form was still common, domed and conical seals with flat surfaces for the intaglios became popular. The Egyptians initially adopted the cylinder but later produced seals of various shapes, including that of the scarab beetle, often cut in one of the colored quartzes, such as amethyst, carnelian, or jasper. Unlike the people of Asia Minor, they engraved symbols rather than pictorial scenes (see Egyptian Art and Architecture). Although the Egyptians made use of the quartzes for their engravings, the most popular material for the making of seals was glazed earthenware. The earliest Cretan gems were carved in soft steatite, but by about 1700 BC harder stones such as chalcedony were employed. The engraving of seals for the bezels of rings was first practiced about 1100 BC. The carvings on the gems of Greece and Rome provide a complete miniature history of the art of every period during which they were made (see Greek Art and Architecture). The Greek gems of the 6th century BC were cut in agate, carnelian, and chalcedony; by the 4th century BC the last had become the most popular material, although lapis lazuli, agate, jasper, and rock crystal were also employed. Gems of the Hellenistic period, dating from about 330 BC, were cut in a large variety of stones, including garnet, beryl, topaz, sard, agate, and amethyst. The use of glass as a

substitute for more precious stones was introduced about this time. The cameo, usually made of one of the layered quartzes (such as sard onyx) or in colored glass, made its first appearance in Hellenic Greece and was brought to a high artistic level by the Roman craftsmen. The cameo was commonly employed in articles of personal adornment, such as brooches or clasps. The intaglio gems of Rome were usually used as the bezels of rings.

Revival in Europe
By the 2nd century ad gem engraving had declined in Asia Minor, the best examples being talismans produced by the adherents of the Gnostic heresy. They are frequently connected with the symbolism attached to the worship of Mithra's. In Europe a limited number of gems were engraved, usually for bishops rings, until the 7th century, but the art then declined until the end of the 14th century, when Florentine and German engravings made their appearance. In Italy the art received impetus from the ardor with which the Medici family collected gems. Although the artists of the Renaissance based their designs on those of the Greek and Roman artists, they employed a freedom of interpretation that made their work individual. On the other hand, the revival of gem engraving that took place in the 18th and 19th centuries produced works that so closely resembled the classical originals that it is difficult to tell them apart.

Types of Materials for Jewelery

Titanium The specific gravity of a gem is its weight when compared with the same volume of water at a temperature of 4 degrees Celsius. The denser the minerals in the gemstone are, the heavier the weight or specific gravity will be. Heavier gemstones are usually harder as well. The range is from amber, which has a specific gravity of 1.08 and opal, with a specific gravity of 2.05, all the way up to corundum (sapphires and rubies) with a specific gravity of 3.99, spessartite garnet, specific gravity of 4.15, marcasite, specific gravity of 4.9, and cup rite (s.g., 6.0) and castrate (s.g., 6.9). Diamond is in the heavy mid-range, with a specific gravity of 3.52. Hardness Gemstones are often tested by using the Mohs' hardness scale to determine just how hard they are. The harder minerals are more durable in that they do not scratch easily and will hold up better in jewelry. Talc is the softest mineral with a hardness of 1 and can be easily scratched with a fingernail. The gemstones with a rating of 7 or over are relatively hard. Quartz gemstones (citrine, amethyst, etc.) range in the 7's, topaz rates 8, and corundum (sapphires and rubies) are a 9 on the Mohs' hardness scale. Diamond registers a 10 and is the hardest known naturally occurring material on earth, more than ten times the hardness of corundum at 9. There is more of a spread between the gems and minerals found between 2 and 3 and between 5 and 6, however corundum is only about 10 per cent harder than topaz. The hardness is relative, but it is, nevertheless, a useful identification tool. Hardness is almost never used as a separation test with gemstones since it is considered a destructive test and other nondestructive tests exist to enable separation and identification. Cleavage and Fracture Cleavage is the splitting of gems and minerals along one of the planes related to the stone's structure. Crystalline minerals have cleavage and fracture, whereas amorphous or massive stones only fracture. Cleavage is considered perfect or if the stone parts and produces perfect smooth planes (diamond, topaz) and is very important in diamond-cutting. Fracture is the way a stone breaks. Consider fracture to be similar to a piece of wood breaking in a direction other than the direction of it's grain. Conchoidal fracture, which is most common in gemstones, shows a series of arcs that spread outward. Tenacity or Toughness Tenacity or toughness is the ability of a stone to withstand pressure or impact. Minerals which

crumble into small pieces or a powder are said to be brittle. If a gem bends but returns to its original position, it is said to be elastic (mica, nephrite, jadeite); these minerals are tough and difficult to break. The jade gemstones (jadeite, nephrite) are the toughest of all gems, making them also difficult to cut. Talc and gypsum are examples of minerals which are flexible. Ductile or malleable minerals are those (gold, silver, etc.) which may be flattened out into thin sheets under pressure. The brittleness factor of a gemstone is an important consideration in gem cutting and polishing. Many gem crystals shatter or chip easily, and this must be taken into consideration when cutting. Magnetism and Electricity Those stones which are attracted by a magnet are considered magnetic, such as magnetite and hematite, which contain iron. Most minerals and gems are poor conductors of electricity. Good natural conductors include native metals and minerals with a metallic luster (pyrite). Natural blue diamond is a semi-conductor. Some stones, such as tourmaline, become electrically charged when heated and are said to be pyroelectric. Tourmaline is also piezoelectric; it becomes charged if stressed at certain points along the crystal. Quartz is an important piezoelectric mineral and this factor is what makes it useful in electronic circuits and photoelectric processes. Amber is triboelectric; it develops a negative electric charge when it is rubbed and attracts small fragments to its surface.

Thermal

Conductivity

Some stones are good conductors of heat, such as quartz, which draws heat away from the body when held and thus feels cold to the touch. A poor thermal conductor, such as amber, feels warm to the touch because it does not conduct heat away from the body. The surface of a genuine gemstone will DE-mist more rapidly than that of glass or an artificial stone. Thermal conductivity should also be considered when cutting gemstones, as some stones will need a cooling-off period during the cutting.

Optical Properties of Gems

Luminescence Luminescence incorporates a gemstone's ability to emit visible light in darkness when exposed to ultraviolet light (fluorescence, named after flourite, the predominant fluorescent gemstone), and in the case of kunzite, to produce an "afterglow" which lingers after the light has ceased (phosphorescence). Luster The luster or brilliance of transparent gems is caused by light reflecting from the stone's surface. The smoother and more highly polished the surface is, the greater the luster will be. High light refractivity of a gem will cause greater luster as well. The most intensive luster is seen in the highest refractive indices, diamond, zircon, and rutile, and is known as an adamantine luster. Hematite produces a metallic luster, even though it is not transparent. Most gemstones have a vitreous or glassy luster, but there are other types of lusters, including resinous (amber), greasy (serpentine), waxy (turquoise), pearly (rhodonite), and silky (tiger's eye). Refraction and Birefringence Refraction is the bouncing around of light from the greater part of the light ray which hits the gemstone and passes into the stone. As it enters the denser medium of the gem, the light bends and the amount of bending or light refraction produces a measurable index (refractive index), which is often used to help identify a gemstone. When light hitting a gemstone splits into two rays traveling through the stone at different speeds and in different directions, the reaction is called birefringence or double refraction. This is seen uncommonly and in a variety of calcite called Iceland Spar as well as zircon, rutile, and sphene. Dispersion

Dispersion is the separation of light into its separate spectral colors. Gemstones with the highest light refraction typically show the highest dispersion rate as well (rutile, sphene, diamond, zircon). This color dispersion or fire can be enhanced by a gem cutter if he uses an appropriate facetting style. Pleochroism Color changes which are evident when viewed from different angles in gemstones (iolite, alexandrite, andalusite) is called pleochroism. It is very important for the gem cutter to cut a pleochroic stone properly in order to show off the different colors. Ruby and sapphire have two color shades and are pleochroic; in ruby, for example, yellow-red and purplish-red, which distinguishes it from garnet and red spinel, which have no pleochroicism. Iolite displays lavender-blue, gray, and pale yellow when viewed from different angles. Titanium Titanium is a silver coloured metal which is about half the weight of Stainless Steel. This weight difference can be a big advantage if you like the look of really thick jewellery but your piercing is gets aggravated by heavy jewellery. Titanium jewellery is an excellent choice to be used in new piercings as it is hypoallergenic and is normally accepted by the body very well. A new piercing done with Titanium jewellery will usually heal up much faster too. Healing quickly is ideal because the longer a piercing takes to heal the longer it it is susceptible to infection and more chance it has to migrate through the skin. 18ct Yellow Gold Only 18 carat solid Gold, which has been tested to ensure it is actually 18 carat or higher, is used at Adrenalin Body Piercing for making jewellery. 18 carat Gold is also a very good material for body jewellery and is readily accepted by most peoples body piercing, but it does not work well for all people. It is softer then metals such as Titanium, Niobium and 316L steel and some peoples skin can actually discolour the gold but it can easily be re-polished back to its former luster. Gold Body jewellery looks great and is very popular with "Gold People". 9ct gold only contains about 30% gold and therefore we do not recommend it for fresh or healed piercings and therefore never used at Adrenalin. Niobium Niobium is an element metal with similar properties of Titanium but its is not as light. It is Hypoallergenic so it works great for body piercing and the other exceptional property of Niobium is that it can be anodized to a wide variety of colours. Coloured niobium rings, even though inert in the body, are not recommend for initial piercings. This is due to the need to rotate the jewellery through the piercing to properly clean it and that rotating can causes the colour to wear thin, dull and patchy. The thickness of this colour is between and 1 one millionth of a centimeter thick! If you want to use anodized Niobium jewellery in your piercing then we recommend that you wait until the piercing has fully healed. Niobium rings can be highly polished to a silver colour so Niobium jewellery is a great choice for the initial piercing too. Niobium jewellery can also be coloured to a Black/Hematite colour. This surface is a lot more durable then the surface of anodized Niobium jewellery. At Adrenalin Body Piercing we can also re-anodize or re-blacken your jewellery if it ever needs it! 316L Grade Stainless Steel 316L Stainless Steel, often referred to as "Surgical Stainless Steel", contains some Nickel which quite a few people are allergic to. Some peoples piercings heal up fine with stainless steel, although it may considerably lengthen the healing time. This longer healing time may allow the jewellery to migrate from its original placement.

For wearing in fully healed piercings 316L Stainless Steel is usually fine. For some people however, if they use this jewellery then the piercing will become aggravated causing redness, swelling and pain. If this happens you may be able to correct the problem by replacing the Stainless Steel jewellery ASAP with the jewellery you wore to successfully heal the piercing. Acrylic Acrylic often referred to as Perspex is also used for "Body Jewellery". We have quite a range of jewellery including: Bead rings (which glow under "Black Light"), Barbells, Straws, Hoops, Tubes, Acrylic Ear Plugs (Tapered and Straight) in many different finishes, sizes and colours. Ebony Tribal

Ear

plugs.

Our

Ebony

comes

from

the

Masai

tribes

in

Africa.

Gemstones Precious and Semiprecious Stones

Precious and semiprecious stones, in addition to gold, silver, and platinum, are the most commonly used components of jewelry. Precious Stones: Diamonds have traditionally been the most highly prized of such stones, varying in color from yellow to bluish white and sometimes reaching enormous size. Rubies, emerald, and sapphires are other precious stones used for jewelry, as are the less costly chrysoberyl, topaz, and zircon. Semiprecious Stones:

Semiprecious Stones: Amethyst, garnet, opal, aquamarine, jade , turquoise, agate, onyx, lapis lazuli, and malachite. Stones of organic origin: Amber, a fossil tree resin, is a highly valued stone. Pearls and coral, though animal in origin rather than mineral, are also usually considered gemstones. Agate may be stained a variety of colors: red, lemon yellow, green, blue, and brown. Jasper stained blue to simulate Lapis Lazuli, and turquoise is stained to imitate opal. Heat treatment of gems to improve or change color has been practiced for centuries. When heated, smoky quartz resembles citrine or topaz, some brownish or reddish zircon becomes bright blue or colorless, yellow topaz becomes pink, slightly colored chalcedony becomes carnelian red, and some rubies or amethyst are more evenly colored. Irradiation of certain gemstones also causes color changes. Some colorless diamond become green, rose quartz becomes brown, and decolorized amethyst regains its purple hue. These color changes are not always permanent, and the stone may become radioactive. In recent times various kinds of synthetic gems, including rubies, sapphires, and emerald, have been produced. Two methods of fabrication are currently employed, one involving crystal growth from solution and the other crystal growth from melts. In addition to their use as jewelry, gems were regarded by many civilizations as miraculous and endowed with mysterious powers. Different stones were endowed with different and sometimes overlapping attributes. The diamond, for instance, was thought to give its wearer strength in battle and to protect him against ghosts and magic. During the Middle Ages, a ruby ring was thought to bring its owner lands and titles, to bestow virtue, to protect against seduction, and to

prevent effervescence in water--but only if worn on the left hand. Vestiges of such beliefs persist in the modern practice of wearing a birthstone.

Types of Gemstones
y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y
Agate Moss Agate Eye Agate Blue Lace Agate Tree Agate Snakeskin Agate Fire Agate Abalone Shell Alexandrite Amazonite Amber Amethyst Ametrine Apatite Aragonite Angel Aura Angelite Apophyllite Aqua Aura Aquamarine Atlantasite Aventurine Azurite Bloodstone Blue Quartz Blue Lace Agate Cacoxenite Cactus Quartz White Calcite Honey Calcite Red Calcite Blue Calcite Green Calcite Optical Clear Calcite Mangano Calcite (Pink) Orange Calcite Carnelian Cat's Eye Celestite Chalcedony Chalcopyrite Charoite Chrysanthemum Chrysocolla

Major Players in the Jewelery Market

Of late, some of the world's biggest names in the jewelery and luxury items such as watches and cuff-links are making inquiries to set up shop in India. Multi-national jewelery brands such as Tiffany, Cartier, Zales and Harry Winston are all said to be interested in coming here following the Government's decision to allow foreign direct investment of up to 51 per cent in single brand retail stores. Most of these stores have been sourcing cut and polished diamond and gold items from Indian firms. Now they are making inquiries for possible tie-ups in India.

Other existing and new foreign players are drawing plans for expansion and launch of their operations in India:
y y
De Beers has got permission to survey for diamonds in Jharkhand, Italian luxury silverware manufacturer, Greggio Argento, will set up two exclusive stores in Mumbai and Delhi within the next three months, through a marketing tie-up with Gitanjali Lifestyle a subsidiary of Gitanjali Gems. Swarovski, the global crystal goods manufacturer and marketer, is on an expansion spree in India and hopes to achieve 5 to 10 per cent of the global turnovers from the country in the next ten years. The company plans to set up 30 stores by 2009, from the current 13. Damas India, part of one of the largest jewelery retail outlets in the world, is adding 16 new stores to its present dozen stores in India.

Simultaneously, domestic players are also drawing aggressive plans:

y y y
Shrenuj & Company Ltd has acquired 84.6 per cent stake in the US-based jewelery distributor Simon Golub & Sons Inc for US$ 22.7 million. Kerala-based jeweller Malabar Gold will spend US$ 48 million over the next year in order to expand its presence in southern India as well as abroad. Gitanjali Gems Ltd, a Mumbai-based jeweller, has incorporated a wholly-owned subsidiary in Dubai, Gitanjali Ventures DMCC, whose main activity is trading in diamonds, precious stones, diamond jewelery and pearls. Also, the Gitanjali Group has announced its foray into the luxury retail market through a new entity Luxury Connexions'. The company will invest US$ 24.5 million over three years to set up luxury malls in eight leading cities across the country.

Two new special economic zones (SEZs) for gems and jewelery are to come up at Goregaon and Dhulia, both in Maharashtra. Also, the state-run Minerals and Metals Trading Corp. (MMTC), plans to establish a gems and jewelery special economic zone (SEZ) in partnership with a private company

Diamond
Diamond is an allotrope of carbon. It is the hardest known natural material and the third-hardest known material after aggregated diamond nanorods and ultra hard fullerite. Its hardness and high dispersion of light make it useful for industrial applications and jewelry. Diamonds are specifically renowned as a material with superlative physical qualities they make excellent abrasives because they can be scratched only by other diamonds, Borazon,

ultrahard fullerite, or aggregated diamond nanorods, which also means they hold a polish extremely well and retain their lustre. Approximately 130 million carats (26,000 kg) are mined annually, with a total value of nearly USD $9 billion, and about 100,000 kg are synthesized annually. The name diamond derives from the ancient Greek adamas ( ? ; invincible). They have been treasured as gemstones since their use as religious icons in ancient India and usage in engraving tools also dates to early human history.Popularity of diamonds has risen since the 19th century because of increased supply, improved cutting and polishing techniques, growth in the world economy, and innovative and successful advertising campaigns. They are commonly judged by the four Cs: carat, clarity, color, and cut. Roughly 49% of diamonds originate from central and southern Africa, although significant sources of the mineral have been discovered in Canada, India, Russia, Brazil, and Australia. They are mined from kimberlite and lamproite volcanic pipes, which brought to the surface the diamond crystals from deep in the Earth where the high pressure and temperature enables the formation of the crystals. The mining and distribution of natural diamonds are subjects of frequent controversy such as with concerns over the sale of conflict diamonds (aka blood diamonds) by African paramilitary groups.

Material Properties
A diamond is a transparent crystal of tetrahedrally bonded carbon atoms and crystallizes into the face centered cubic diamond lattice structure. Diamonds have been adapted for many uses because of the material's exceptional physical characteristics. Most notable are its extreme hardness, its high dispersion index, and extremely high thermal conductivity (900 2320 W/m K), with a melting point of 3820 K (3547 C / 6420 F) and a boiling point of 5100 K (4827 C / 8720 F).[5] Naturally occurring diamond has a density ranging from 3.15 to 3.53 g/cm , with very pure diamond typically extremely close to 3.52 g/cm .

Hardness
Diamond is the hardest natural material known to man: Its hardness set to 10 (hardest) on Mohs scale of mineral hardness and having an absolute hardness value of between 90, 167, and 231 gigapascals in various tests. Diamond's hardness has been known since antiquity, and is the source of its name. The hardest diamonds in the world are from the New England area in New South Wales, Australia. These diamonds are generally small, perfect to semiperfect octahedra, and are used to polish other diamonds. Their hardness is considered to be a product of the crystal growth form, which is single stage growth crystal. Most other diamonds show more evidence of multiple growth stages, which produce inclusions, flaws, and defect planes in the crystal lattice, all of which affect their hardness. The hardness of diamonds contributes to its suitability as a gemstone. Because it can only be scratched by other diamonds, it maintains its polish extremely well, keeping its luster over long whiles. Unlike many other gems, it is well-suited to daily wear because of its resistance to scratchingperhaps contributing to its popularity as the preferred gem in an engagement ring or wedding ring, which are often worn every day. Industrial use of diamonds has historically been associated with their hardness; this property makes diamond the ideal material for cutting and grinding tools. As the hardest known naturallyoccurring material, diamond can be used to polish, cut, or wear away any material, including other diamonds. However, diamond is a poor choice for machining ferrous alloys at high speeds. At the high temperatures created by high speed machining, carbon is soluble in iron, leading to

greatly increased wear on diamond tools as compared to other alternatives. Common industrial adaptations of this ability include diamond-tipped drill bits and saws, or use of diamond powder as an abrasive. Industrial-grade diamonds are either unsuitable for use as gems or synthetically produced, which lowers their value and makes their use economically feasible.

Electrical Conductivity
Other specialized applications also exist or are being developed, including use as semiconductors: some blue diamonds are natural semiconductors, in contrast to most other diamonds, which are excellent electrical insulators.

Toughness
Toughness relates to a material's ability to resist breakage from forceful impact. The toughness of natural diamond has been measured as 3.4 MN m-3/2 which is good compared to other gemstones, but poor compared to most engineering materials. As with any material, the macroscopic geometry of a diamond contributes to its resistance to breakage. Diamond is therefore more fragile in some orientations than others.

Color
Diamonds can occur in nearly any color, though yellow and brown are by far the most common.[6] "Black" diamonds are not truly black, but rather contain numerous dark inclusions that give the gems their dark appearance. Colored diamonds contain impurities or structural defects that cause the coloration, while pure or nearly pure diamonds are transparent and colorless. Most diamond impurities replace a carbon atom in the crystal lattice, known as a carbon flaw. The most common impurity, nitrogen, causes a slight to intense yellow coloration depending upon the type and concentration of nitrogen present. The Gemological Institute of America (GIA) classifies low saturation yellow and brown diamonds as diamonds in the normal color range, and applies a grading scale from 'D' (colorless) to 'Z' (light yellow). A blue diamond recently fetched nearly $8 million. The blue hue was a result of trace amounts of boron in the stone's crystal structure.

Identification
Diamonds can be identified via their high thermal conductivity. Their high refractive index is also indicative, but other materials have similar refractivity. Diamonds do cut glass, but other materials above glass on Mohs scale such as quartz do also. Diamonds easily scratch other diamonds, but this damages both diamonds.

Famous Diamonds
A number of individual diamonds have become famous, primarily for their great size but also for their exceptional color, cut, uniqueness, or history. The Great Mogul diamond, reputed to have weighed 240 carats when cut, has disappeared since it was described by the French traveler Jean Baptiste Tavernier in India in 1665. Some authorities believe that the Koh-i-noor diamond, which now weighs 106.1 carats and is one of the British crown jewels, was part of the Great Mogul. Jean Baptiste Tavernier is also associated with the Hope diamond, a 45.52-carat blue diamond that originally weighed 110.5 carats. The Hope diamond is a recut version of the Great Blue diamond. The Great Blue diamond was once part of the French crown jewels.

The Cullinan, the largest rough diamond ever found, was discovered in the Premier Mine in South Africa in 1905. The government of the Transvaal, a British crown colony that later became part of the Union of South Africa, presented the Cullinan to King Edward VII. The Cullinan weighed 3,106 carats (1.37 lb) before cutting and was pronounced by crystallographers to be a cleavage fragment of a considerably larger stone. When the stone was cut a total of 105 gems were produced weighing 1,063 carats in all. The largest of these was a 530.2-carat drop-shaped stone called the Star of Africa or Cullinan I. The Star of Africa is the second largest cut diamond in existence and is set in the British royal scepter. The largest known cut diamond is a yellowishbrown stone called the Golden Jubilee. It was given to the King of Thailand in 1997 to honor the 50th anniversary of his coronation. The Vargas diamond, found in Brazil in 1938, weighed 726.6 carats in its uncut state. When cut in 1945, it yielded 29 stones with a total weight of 411 carats. In 1934 a diamond of almost precisely the same weight, the Jonker diamond, was discovered in an alluvial deposit near the Premier Mine. The Jonker is the finest-quality large diamond ever found. It was cut into 12 gems ranging from 125.4 to 5.3 carats in weight. In 1967 the Lesotho diamond was discovered, also in South Africa. It weighed 601.3 carats uncut. Other famous diamonds include the Regent, the Sancy, the Tiffany, the Orlov, and the Dresden Green.

The Gem and Jewellery Export Promotion Council

Set-up in 1966, the GJEPC has over the years effectively moulded the scattered efforts of individual exporters to make the gem and jewellery sector a powerful engine driving India's export-led growth. This apex body of the gem & jewellery industry has played a significant role in the evolution of the Indian gem and jewellery industry to its present stature. GJEPC is continuously working towards creating a pool of artisans and designers trained to international standards so as to consolidate the Indian jewellery industry and establish it as a prominent global player in the jewellery segment. With strength of 6,500 members' spread all over the country, the Council is primarily involved in introducing the Indian gem & jewellery products to the international market and promotes their exports. To achieve this, the Council provides market information to its members regarding foreign trade inquiries, trade and tariff regulations, rates of import duties, and information about jewellery fairs and exhibitions. The role of GJEPC can be broadly classified under the following categories:

Trade Facilitator : The Council undertakes direct promotional activities like organising joint participation in international jewellery shows, sending and hosting trade delegations, and sustained image building exercises through advertisements abroad, publications and audio-visuals.GJEPC also invites countries to explore areas of co-operation in supply of rough diamonds and rough colored stones as well as offers co-operation in jewellery manufacturing. The Council regularly communicates with Indian Embassies, trade bodies and associations in various countries. And finally, GJEPC also organizes seminars, buyerseller meets, symposiums. Advisory Role : A crucial area of activity of the Council has also been aiding better interaction and understanding between the trade and the government. The Council takes up relevant issues with government and agencies connected with exports and submit documents for consideration and inclusion in the Exim Policy. The Council also grants membership, registration certificates and performs other roles as per the Exim Policy.

Nodal Agency for Kimberly Process Certification Scheme : GJEPC works closely with the Government of India and the trade to implement and oversee the Kimberly Process Certification Scheme. To that effect, the Council has been appointed as the Nodal Agency in India under the Kimberly Process Certification Scheme. Training and Research : The Gems & Jewellery Export Promotion Council runs a number of institutes that provide training in all aspects of manufacture and design in Mumbai, Delhi, Surat and Jaipur. These training programs are being conducted to ensure that the Indian industry achieves the highest levels of technical excellence. Varied Interests : The Council also publishes a number of brochures, statistical booklets, trade directories and a bi-monthly magazine - Solitaire International, which is distributed internationally as well as to its members. Finally, the Council has also developed its own promotional audiovisual film - 'India - Your First Choice', which is dubbed in various international languages as well as screened at various trade shows.

EXECUTIVE SUMMARY
Gems and Jewellery have been a part of the Indian civilization since its recorded history, the significance of the gems and Jewellery industry in the Indian economic scenario is a development of the last three or four decades. In 1966-67, the export turnover of the Gems & Jewellery industry was just Rs 220 million representing a 3 per cent of total merchandise exports. However, it has now grown to become one of the leading export oriented industries in India recording an export turnover of around Rs 91617.53 Crores during 2008-09, making it a significant foreign exchange earner for the country. The gems and jewellery sector, which has seen a substantial fall in exports since 2007 due to the withdrawal of a 6 per cent duty concession under the Generalized System of Preferences on jewellery exports to the US, has been severely affected by the economic meltdown. As a result, Indias share of gems and jewellery exports to the US has come down from 36 per cent in 2006 to 20 per cent in 2009. The UAE was the largest importer of gems and jewellery from India in 2008-09, with a share of 31 per cent. This was followed by Hong Kong with a 25 per cent and the US with 20 per cent. The gems and jewellery sector accounted for 13 per cent of Indias total merchandise exports. During April 2009, the total gems and jewellery exports of the country was $1,144 million, as against $1,740 million during the same period last fiscal, a fall of about 34 per cent. Page | 1

INTRODUCTION
The gems and jewellery sector can be categorized into the following sub-sectors based on characteristics, processing techniques, preciousness in terms of price range and marketability.

Gemstones - Diamonds and coloured stones (precious, semi-precious and synthetic)

Jewellery - Plain Gold, Studded, Silver, Costume

Pearls

The global market for gems and jewellery today is pegged at US$ 85 billion with key markets having registered an average compounded annual growth rate (CAGR) of 5-10 per cent in the last decade. The global market for Gold is estimated at 3300 tonnes. South Africa is the worlds largest producer of gold, followed by U.S.A and Australia. Together, these countries account for 45 per cent of the worlds total gold production. India is the largest consumer of gold, followed by the U.S.A. In the production of Silver, the Americas have near monopoly - Mexico, Peru and the United States are the top three silver producing countries. Platinum is an extremely rare precious metal. More than 90 per cent of all platinum supplies come from South Africa and Russia. With increased economic development, the demand for the metal has grown at a faster pace than it is being mined. The United States is the worlds leading consumer of platinum overall, while China has emerged as the leading consumer of platinum jewellery. Jewellery manufacturing is traditionally dominated by players from 3-4 countries.
Italy Hong Kong/China Worlds largest producer of

Produces a substantial fine jewellery, with about portion of the world 8,200 factories annually

jewellery market producing an estimated US$ 6.4 billion worth. Italys strength lies in China and Hong Kong are plain gold jewellery. strong in both gold and studded jewellery
Thailand United States

Major global supplier of While a growing number of quality jewellery over American manufacturers the last two decades. export their goods around the world, the sheer size of Thailands strength is the domestic market keeps in gemstone jewellery. a large portion of the goods at home.

Page | 2

Over the years, global markets have been impacted by several developments like falling trade barriers, increasing competition, changing customer preferences and developments in technology in several areas. The global jewellery industry is being transformed by a few key trends such as:

Increasing competition among top producing countries.

Emergence of different materials different alloys within gold, as well as non-gold jewellery.

Emergence of new manufacturing techniques.

Requirement of stricter quality norms and hallmarking. In this context, India is fast emerging as a leading destination for jewellery manufacturing in the world. The following sections discuss Indias gems and jewellery sector in detail with a specific focus on the following areas:

Significance of India within the global gems and jewellery sector

The structure and current scenario of the sector in India

Indias competitive advantages in the sector

Future outlook

INDIA AND GEMS AND JEWELLERY

India has been one of the most important countries for the production of Gems And Jewellery. One of the highlights is the production of Studded Jewllery. Studded Jewellery trading in India is age old as it is established by the fact that in 1650 A.D., sources report the employment of more than 60,000 workers in the Eluru mines, where they dug and washed the precious stones. Today though India has almost no raw Studded Jewllery left within her own soil still we produce 70% of the World gems in terms of quantity and 45% in terms of value. India is the original country which discovered gems and initiated gem craft. The gems produced here gave birth to a fabulous industry and global trade. Looking at the evolution of the Indian Gold Market, India was never in dearth of Gold Reserves. History had been a witness of the fact that India was always self sufficient in all its natural resources and more so in case of gold. It was this

abundance in availability of such precious metals that lured foreign invaders from all parts of the globe as well as from time to time to come to India and plunder as much of it as was possible for them to do. However there were a significant number of such intruders who, after entering the country, fell for the land and its cultural heritage which eventually led them to settle and establish their empire in India. As an inevitable consequence of the lavish livelihood exhibited by the Indian rulers, the Gold reserves in India gradually diminished. The arrival of the British in the hierarchy in the middle of the eighteenth century announced the decline of India's Gold Reserves even further. The colonial status given to India by the British crippled the economy which once boasted of its wealth in gold. Huge quantities of the precious metals were carried to England right after their extraction. As a result a major proportion of India's Gold Reserves was 'vanishing' without even entering into the economy. By the time India gained independence, a huge vacuum had already been created as far as Gold Page | 3